Norway: Norges Bank maintains sight deposit rate at 1.50%
October 24, 2013
At its 24 October monetary policy meeting, Norges Bank (NB) decided to keep the sight deposit rate unchanged at 1.50%, a move expected by market analysts. The decision represents the 10th consecutive meeting in which the Central Bank decided to maintain the key policy rate unchanged.
The Bank stated that private consumption has increased less than expected and the krone depreciated considerably in recent weeks, while inflation moderated in September, after having picked up in the summer. Norges Bank also stated growth in advanced economies is gradually improving, whereas economic activity in emerging market economies has slowed down. According to Central Bank Governor Oystein Olsen, the key policy rate should remain, "at today's level in the period to summer 2014, followed by a gradual increase to a more normal level." The next monetary policy meeting is scheduled for 5 December.
FocusEconomics Consensus Forecast panelists expect the sight deposit rate to remain stable through the end of this year, resulting in an average of 1.50%. In 2014, the panel sees the key policy rate rising to 1.73%.